Sallie Mae 2014 Annual Report Download - page 104

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SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, unless otherwise noted)
2.
Significant Accounting Policies (Continued)
Recently Issued Accounting Pronouncements
On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from
Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for
the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance
when it becomes effective. The new standard is effective on January 1, 2017. Early application is not permitted. The standard
permits the use of either the retrospective or cumulative effect transition method. We have determined that this new guidance
will have an immaterial impact on the financial results of the Company.
3. Cash and Cash Equivalents
As of December 31, 2014, cash and cash equivalents include cash due from the FRB of $2,344,901 and cash due from
depository institutions of $14,879. As of December 31, 2013, cash and cash equivalents include cash due from the FRB of
$2,181,463, and cash due from depository institutions of $1,402. As of December 31, 2014 and 2013, we had no outstanding
cash equivalents.
In 2010, the FRB introduced the Term Deposit Facility to facilitate the conduct of monetary policy by providing a tool
that may be used to manage the aggregate quantity of reserve balances held by depository institutions. Under this program the
FRB accepts deposits for a stated maturity at a rate of interest determined via auction. The funds are removed from the
accounts of participating institutions for the life of the term deposit. We participated in these auctions in 2014 and 2013,
resulting in interest income of $1,248 and $813, respectively. As of December 31, 2014 and 2013, no funds were on deposit
with the FRB under this program.
We are required to maintain average reserve balances with the FRB based on a percentage of deposits. The average
amounts of those reserves for the years ended December 31, 2014 and 2013 were $324 and $1,548, respectively.
4. Investments
The amortized cost and fair value of securities available for sale are as follows:
As of December 31, 2014
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fa ir Va lue
Available for sale:
Mortgage-backed securities ..........
$
167,740
$
2,686
$
(1,492
)
$
168,934
As of December 31, 2013
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fa ir Va lue
Available for sale:
Mortgage-backed securities ..........
$
106,977
$
706
$
(5,578
)
$
102,105
F-20